The Company | Investment Highlights

A Diversified Fleet of Power Generation Assets

  • Diverse group of 23 power projects totaling 1,407 MW (net ownership), located in eleven U.S. states and two Canadian provinces; 21 projects currently in operation (1,327 MW net ownership)

  • Projects are well diversified based on electricity and steam customers, regulatory jurisdictions, and regional power pools

  • 95% of our power generation is "clean power" (42% renewable and the balance natural gas)

Demonstrated Operating Performance of Projects

  • Projects have a demonstrated track record of high availability and reliability

Stable Power Purchase Agreements (PPAs) with Strong, Diverse Utility Customers

  • Majority of projects sell electricity and steam to utilities and large commercial and industrial customers under long-term PPAs that have expiration dates ranging from 2020 to 2043

  • Cash flows derived from the sale of electricity under long-term PPAs typically designed to pass through fuel cost fluctuations

  • Weighted-average remaining PPA term of approximately 6.2 years; managing through near-term PPA expirations and opportunistically seeking to extend PPAs prior to expiration at select projects

  • More than half of Project Adjusted EBITDA is generated by PPAs that expire beyond the next five years

  • Diversified customer base, consisting mostly of regulated electric utilities with investment-grade credit ratings from Standard & Poor's (S&P)

Strong In-House Operations and Partnerships with Experienced Operators

  • Approximately 75% of our projects are operated and maintained by our seasoned team at Atlantic Power

Delivering on Balance Sheet and Cost Reduction Priorities

  • Reduced consolidated debt by approximately $1.2 billion since year end 2013, and reduced debt at equity-owned projects by approximately $76 million

  • Cash interest savings associated with this debt reduction and re-pricings of our credit facilities are approximately $90 million on an annualized basis

  • Leverage ratio of 3.7 times at September 30, 2019; amortizing term loan structure results in additional deleveraging over time

  • Strong liquidity of $181 million (at September 30, 2019) and improved credit profile

  • Reduced overhead costs by approximately 60% from 2013

Balanced Approach to Capital Allocation

  • Since December 2015, have invested $38.8 million in the repurchase of approximately 17.0 million shares at an average price of $2.28 per share

  • Since June 2017, have invested Cdn$24.7 million in the repurchase of nearly 1.6 million preferred shares at an average discount to par of 37%; implied after-tax returns of approximately 10 to 11%

  • In 2018 and 2019, invested approximately $45 million to acquire the remaining 50% interest in Koma Kulshan hydro facility, two biomass plants in South Carolina and equity interests in two biomass plants in Michigan and North Carolina; PPAs expire between 2027 and 2043; expected average annual EBITDA contribution through 2027 of $8 million to $10 million

  • In 2013 through 2017, invested $25 million to enhance value of existing projects by increasing output, reducing costs and improving efficiency; compelling risk-adjusted return

  • In October 2017, repaid $55 million of Piedmont 8.1% project debt ahead of August 2018 maturity date; now have debt-free plant with PPA that runs through 2032